New apartments and a public thoroughfare lined with food outlets will soon be built in the Launceston CBD as part of a $15 million redevelopment of the Birchalls building.
The City of Launceston and local consortium Birchalls Build Co have signed a term sheet to transform the long-vacant heritage site between the Brisbane Street Mall and the Paterson Street car park.
The project will feature six micro food and beverage tenancies, two larger commercial spaces and 21 apartments at the rear of the building.
Birchalls Build Co spokesperson Sam Haberle said bringing the site back to life had long been a dream for the group.
“Our vision has always been to create a north-south connection through Birchalls from the mall to the car park, with food, drink, art and greenery bringing that passageway to life,” he said.
“We’ll also activate the precinct early with the addition of a small public playground and temporary mobile food offerings during construction so people can see and feel the energy returning to the mall before the full project is complete,” Haberle said.
“As the old Birchalls’ slogan says, there’ll be something for everyone.”
Public toilets, a parenting room and a children’s play area will also be added to the mall.
The building’s heritage facade will be retained, with new inner-city housing built behind it.
Under the agreement, the council will transfer the site to Birchalls Build Co and provide short-term rates relief until the apartments are sold.
The duration of the relief period has not been disclosed.
Mayor Matthew Garwood said the deal would breathe new life into a long-idle asset.
“Council made a really deliberate choice to step in when they did, purchasing Birchalls so it wouldn’t keep slipping into decline,” he said.
“And now we’ve secured a deal that benefits the community long-term through renewed activation in the mall, new homes, more vibrancy and future rate returns once the apartments are sold.”
The council purchased the building for $8.8 million in 2020, a decision criticised at the time by the Tasmanian Ratepayers Association.
Construction is expected to begin in mid-2026 and take around two years.
Birchalls Build Co is made up of S. Group and Tas City Building.
